CASCADE TOWNSHIP -- The owner of Chapel Hill Memorial Gardens is suspected of misusing $4.2 million that was supposed to be held in trust for burials at the cemetery, state authorities said today.

Robert Nelms, an Indiana businessman, is not criminally charged in connection to the allegations, though Attorney General Mike Cox is investigating.

And today, a state agency obtained a temporary injunction from Ingham County Circuit Judge Thomas L. Brown that bars Nelms access to cemetery money and any oversight of the grounds at the corner of 28th Street and Patterson Avenue SE.

State Cemetery Commissioner Andrew Metcalf Jr. said today that an audit of Chapel Hill finances in 2004 -- when Nelms bought the burial sites -- showed the trust account had a balance of about $3.8 million.

A recent audit shows that money is gone and there is "very little," left, Metcalf said.

"We received numerous anonymous tips and were inundated by e-mails and communication that something wasn't right there," Metcalf said. "Something was askew and we intend to make it right as best as we can."

The missing money was transferred to accounts controlled by Nelms, said Matt Frendewey, a spokesman for Cox's office.

Nelms claims the money is in off-shore hedge accounts, but he has not produced any documentation, authorities said.

"At this point we're in the very preliminary stages of the investigation, but you need to take fast action in a case like this to prevent any further damage," Frendewey said. "I think it's fair to anticipate that there will be charges down the road, but this isn't going to be resolved overnight."

The alleged fund misuse comes on the heels of a state investigation that claims Clayton Smart and his partner, Carter Green, stole up to $70 million from 28 cemeteries across Michigan.

Green was convicted last week of racketeering and Smart awaits trial on the same charge. Those men diverted money to speculative investments and their own accounts, authorities said.

There is no indication at this time that Nelms is connected to Smart and Green, Frendewey said.